Western Lakota Energy Services Inc.

Western Lakota Energy Services Inc.

March 14, 2005 12:24 ET

Western Lakota Agrees to a $30 Million Credit Facility and Announces Conditional Sale of Subsidiary

CALGARY, ALBERTA--(CCNMatthews - Mar. 14, 2005) - Western Lakota Energy Services
Inc. (WLE - TSX Venture), is pleased to announce that it has entered into an
agreement with GE Canada Commercial Finance for a $30 million credit facility to
be used to finance the construction of up to ten new drilling rigs. The Company
currently plans to build 8 of these rigs, which will bring its total fleet to 24
by the end of the year. Construction of the other two rigs would be considered
later in the year when the Company has evaluated the future market needs. The
Company also intends to use the proceeds from the $25.3 million private
placement which closed last month and cash flow generated from operations
towards the construction of the rigs.

The Company also announces that it has agreed to combine the business operations
of its only remaining subsidiary included in discontinued operations, E-Tronics
Battery Support Systems Inc. ("E-Tronics"), with Heartwood Capital Corporation
("Heartwood"), a capital pool company, subject to a minimum financing and
regulatory approval. In consideration for the shares of E-Tronics, the Company
is to receive 5,200,000 Heartwood units at $0.25 per unit, with each unit
consisting of one common share and two-thirds of a warrant.

In conjunction with the closing of this transaction, Heartwood has commenced a
private placement equity offering of up to 8,000,000 units for gross proceeds of
up to $2,000,000 through StephenAvenue Securities Inc. Upon completion of the
offering, Heartwood is to reimburse the Company for product development costs,
incurred on behalf of E-Tronics, in an amount equal to 25% of the gross proceeds
of the offering. It is expected that, upon conclusion of this proposed
transaction, the Company will no longer have control of the assets currently
held by E-Tronics.

In addition, options to purchase 8,000 common shares of the Company were granted
to a director of the Company at an exercise price of $5.79 per share and will
vest two years from the date of grant and expire three years from the date of

One of Canada's fastest-growing drilling contractors, Western Lakota currently
operates 16 rigs and plans to grow its fleet to 24 rigs by the end of 2005. The
Company works closely with Aboriginal communities through ownership and
employment opportunities. Western Lakota continues to provide one of the newest
fleets of safe and efficient drilling rigs in Canada while striving to deliver
strong results for shareholders, customers and partners.

The TSX Venture Exchange does not accept responsibility for the adequacy or
accuracy of this release.

Contact Information

  • Western Lakota Energy Services Inc.
    Elson McDougald
    President and C.E.O.
    (403) 214-5953
    Email: elson@westernlakota.com
    Website: www.westernlakota.com
    or Western Lakota Energy Services Inc.
    1050, 400 - 5th Avenue SW,
    Calgary, Alberta T2P 0L6
    (403) 214-5970
    (403) 214-5955
    (FAX) or StephenAvenue Securities Inc.
    Paul Cairns
    (403) 777-2448
    Email: paul.cairns@stephenavenue.com